Federal Court Orders Arbitrum DAO to Freeze $71 Million in ETH Linked to North Korean Hackers for Terrorism Compensation

On May 3, documents from the U.S. District Court for the Southern District of New York revealed that the court has issued a restraining order against Arbitrum DAO, prohibiting the transfer of approximately $71 million in ETH assets previously frozen from the KelpDAO hacking incident. The plaintiffs are attempting to utilize these assets to enforce unpaid judgments related to North Korea’s long-standing cases of terrorism and kidnapping. The court documents indicate that the plaintiffs have requested to serve legal notice to Arbitrum DAO through alternative means, considering it a ‘partnership organization’ that can be held accountable. The court also emphasized that Arbitrum DAO has a Security Council governed by ARB holders, which has the capability to take action in emergencies; thus, members refusing to cooperate may face legal repercussions such as contempt of court. Market participants believe this case could become a significant precedent for the U.S. judicial system’s direct constraints on DAO governance structures, highlighting the compliance pressures DeFi protocols face within real-world legal frameworks.